It's like you are stepping back in time when you walk into Picone Fine Food in Dundas, Ontario. As the oldest family-owned retailer in Ontario (and maybe even Canada), what's is the secret to its success?

The secret stems from its past. Sisters Sharon, Theresa, and Lisa have a profound respect for their heritage and their difference. As the granddaughters of Guiseppe Picone, who opened the store at this location in 1915, they grew up in the store. Their father, Joseph Jr., took the store over from his dad in the late 1970s, and each of Joseph Jr.'s eight children, including Sharon, Theresa, and Lisa, worked in the store. Each job they were given to do had to be done well. "Italians have a lot of pride in their food and its presentation." For the three sisters, each of whom had careers outside of retail, this small family business got under their skin and they felt compelled to return. Today there are six employees plus the sisters. In 1989 Joseph Jr. died unexpectedly. His wife was only 60, and some of the eight kids were still at home. At that time supermarkets and big-box stores were winning in the grocery wars. Consumers liked the convenience that supermarkets offered.

So Mom and the kids called a family meeting and decided that they would keep the store open, but to do so they had to be totally different. Their grandfather had built the business on quality products sourced locally and customer service. His signature was the brand mark (as it is still today) so their strategy had to reflect their heritage. What the big-box stores and supermarkets weren't doing well, they would concentrate on. So off the shelf came Campbell's soup and Kraft Dinner, and in their place came local cheeses, milk, meat, and fruits and vegetables from area farms. For products that weren't locally produced, one criterion was that it be a product that wouldn't be found in supermarkets and big big-box stores. Today over 40 different olive oils and balsamic vinegars, artisan breads, and imported pasta and sauces line the old wooden shelves. The owners also asked themselves what do Italians like to and what do they do well. The answer: they love to eat and they love to cook. Mother Elsie started preparing fresh food to sell, and her pies and quiches became best sellers. Elsie's pies were so highly regarded that prime ministers have been known to stop in at Picone Fine Food to pick one up. Elsie died in 2015 at the age of 84, but the tradition of offering fresh food, prepared for sale in store and using fresh local ingredients, carries on. In addition to local and quality merchandise, the sisters take pride in their customer service. They are deeply involved in their community and value the strong relationships they have built with their customers. Customers are treated like family, they know them by name, they know what they like and don't like. The interaction they have each day with each customer brings the customer back time and time again. While tradition may be a key to success, Picone's has kept in tune with food trends. The merchandise mix includes products from organic farms, from farmers who have stalls at the market just around the corner, and from small culinary artisans. They carry vegan and gluten-free products as well as specialty foods, such as Indian and kosher. Their success is evident in the fact that customers come from an hour or more away. Theresa says, "That is my name on the front of our store. That is my father's signature that we use. There is history, there is connection and community is how we this. We love it and it's a passion."

1) What type of retailer is Picone Fine Food? Describe the characteristics it shares with other retailers of this type.

2) How would you describe Picone Fine Food's level of service on the continuum from full-serve to self-service? Why? Give an example of a store at the opposite end of the continuum and explain the differences.

3) Which of the six components of a retail mix have been the most important to the success of Picone Fine Food? Why?

4) Given the trends in retailing presented in the chapter, discuss the primary challenges facing Picone Fine Foods today. Provide a recommendation for another 100 years of retail success.